Chinese startup Move-X Autonomous Driving offers Level 4 autonomous driving through integrated vehicle platforms designed for commercial deployment. US-based startup NuNami designs automotive semiconductors that provide reliable connectivity and safety-critical interfaces. Its modules integrate high-voltage isolation, digital error correction, and built-in self-testing to ensure secure data transfer and fault-tolerant operation in automotive systems. They also incorporate floating-point units that improve computational accuracy and performance. The startup provides single-chip motor control solutions that integrate RISC-V processor cores with programmable MOSFET drivers, FD-CAN and LIN interfaces, and dedicated PWM modules. The systems optimize the performance of electric power steering, vehicle pumps, cooling fans, and HVAC modules.
- From energy-efficient factories to green hydrogen applications, the examples showcased highlight the industryβs shift toward greener production methods.
- Bosch demonstrates this through 77 GHz radar modules integrated into adaptive cruise control and collision avoidance systems.
- Chinese EV automakersβ expansion into new markets, including Europe, other Asian countries, and Latin America as previously mentioned, could see a completely new global EV landscape.
- Moreover, high-performance computing platforms supply the processing power needed to run these systems in real time.
- In the first half of 2023, electrified vehicle production surged by 70%, highlighting the rapid pace of investment in EV production capabilities, and continues to grow.
- 5G connectivity unlocks ultra-low latency communication, enabling real-time vehicle-to-everything (V2X) interactions.
- Further, high-speed automotive Ethernet, 5G networks, and V2X communication extend a carβs perception beyond its line of sight.
- This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle.
The automotive parts market continues to grow
Also, applications extend from adaptive cruise control, lane-keeping, and traffic jam assistance to robotaxis and driverless trucking. Advanced cameras paired with computer vision enable vehicles to classify road users, read signs, and recognize traffic signals, directly supporting ADAS and autonomous navigation. This ensures cybersecurity and reliability for engine control, powertrain management, and other mission-critical automotive applications. Silicon carbide (SiC) semiconductors improve energy efficiency in high-voltage EV systems by reducing losses and enhancing thermal management. Moreover, Asia-Pacific leads the automotive semiconductor market with a 45% global share. In Europe, the EUβs Chips Act aims to raise the blocβs share of global chip production from under 10% to about 20% by 2030.
ChargeX specializes in Modular Electric Vehicle Charging Solutions
According to Statistaβs report, global sales of electric vehicles are expected to reach an astounding US$786.2 billion by the end of 2024. As cities become more congested, shared mobility solutions are becoming increasingly popular. In 2025, we expect to see more automated and electric shared vehicles providing affordable, on-demand transportation. Self-driving vehicles rely on artificial intelligence (AI) and machine learning algorithms to process real-time data from cameras, sensors, and radars. The goal is to enable cars to make decisions and navigate without human intervention. In 2025, automakers will continue improving AI systemsβ reliability, reducing the likelihood of accidents, and enabling safer autonomous driving experiences.
More than half of pickup owners purchase off-road parts and engage in outdoor activities with their vehicles. Overlanding, a newer trend, combines off-roading with remote travel and camping, with products like mounted tents falling under this category. As per the traditional method, we used to visit the dealer and purchase vehicles from him, and the dealer used to make transactions with OEMs. However, as per the new Agency model, we will get to see that the people would directly be dealing with the OEMs and the dealerβs profit would be shared by OEMs. That will enhance in gaining the trust of society and the brandβs potential customers. Consumers thoroughly research their preferred car on their mobile phones, searching for the best offers and dealerships in their area.
- Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
- The demand for sustainable and eco-friendly transportation, like electric luxury vehicles, also drives market growth.
- Tangram Vision allows perception teams to focus on product-specific features by handling complex sensor tasks and accelerating development and deployment processes.
- Additionally, blockchain is instrumental in verifying the supply chain of automotive parts, ensuring that materials and components are sourced from legal and trustworthy suppliers.
- EVs drive the shift to greener mobility and it is aided by advancements in semiconductors for smarter and efficient vehicles.
- Instead of owning a car, consumers will increasingly use digital platforms to access transportation services on demand, whether through ride-sharing, car-sharing, or subscription models.
- Central to this evolution is the growing demand for electric vehicles and software-defined vehicles.
- In addition, the startup integrates regional infrastructure knowledge into vehicle design to ensure durability, accessibility, and energy efficiency.
- German OEMs already have a full roadmap from L2 to L3, with Mercedes Benz commercializing their DrivePilot system, and BMW is likely to follow soon.
MotionSafe enables AI-powered Automotive Cybersecurity
Blockchain secures supply chains and in-car data, and extended reality (XR) advances design, testing, and training. Additive manufacturing shortens prototyping cycles, and IoT-driven analytics improve predictive maintenance. Australian startup V2Grid designs V2G technology that converts EVs into mobile energy resources for homes, businesses, and the national grid.
Top 10 Automobile Industry Trends & Innovations (
Senegal-based startup Kemet Automotive manufactures all-terrain electric vehicles (EVs) designed for the road conditions. It builds connected EV models that operate reliably on diverse terrains and promotes sustainable mobility solutions for the region. The present-day automotive industry is affected by innovative ideas and is ready to transform and evolve rapidly. Current automotive trends are encouraging automotive manufacturers to offer consumers much more than a metal box on four wheels.
With customers becoming more demanding, rules and regulations are becoming stricter, and competition is stronger and faster. Many enterprises are moving ahead to create autonomous vehicles with all the multi-faceted benefits. To meet these new requirements and realize this long-term vision, approaches are required to push against the status quo.
Immersive technologies: VR & AR
- When it comes to the benefits of connected cars, it seems that drivers are more willing to allow for data collection, too.
- It wonβt take too long for the CASE to accelerate the transition of the automotive industry from the way it has been working for hundreds of years.
- Many of these vehicles will feature over-the-air (OTA) upgrades and V2X communication.
- Its product range includes an electric modular chassis, the standard autonomous shuttle pod, and pods for other applications.
- These practices not only meet regulatory demands but also resonate with consumers increasingly drawn to environmentally responsible brands.
- However there are huge opportunities for the industry in the shift to software-defined vehicles and autonomous driving.
From electrification to IoT connectivity, these shifts are changing the way cars are manufactured, sold, repaired, and driven. Shared micromobility vehicles are becoming a popular mode of transportation in cities where the pollution from cars and traffic congestion is particularly evident. Chip shortages have been causing myriad changes to trends that affect the automotive trends that are not all positive.
- Localized production and sourcing are gaining momentum as companies aim to mitigate risks and ensure a steady supply of components.
- From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.
- The inherent flexibility of electric powertrains is enabling automakers to reimagine vehicle design, resulting in lighter, more efficient vehicles.
- Subsidies and incentives for EVs are also under scrutiny, with plans to reconsider or eliminate government-imposed market advantages that favour them.
- Lastly, thereβs even a term βvehicle-to-everythingβ (V2X), which includes all types of vehicle communication.
- The Society of Automotive Engineers (SAE) βLevels of Driving Automationβ standard shows how stages of vehicle automation progress.
- The growing shared mobility trend also looms as more people are using shared transportation methods instead of owning cars.
- The startup also offers Leap EasyTrack, a vehicle tracking solution that allows for quick and easy self-installation, making it simple to transfer between vehicles without downtime.
Automotive purchases will shift to online
This could allow drivers to retain their jobs, but avoid the injuries and deaths that result from exhaustion. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles. Right now, there are only about 73,215 public EV charging stations across the US.
Hyundai Crater Concept Teases the Next XRT Models
The study offers data-based insights and recommendations for action for decision-makers in the automotive sector. Gain in-depth insights into the key developments that characterise the automotive industry. The big data market in automotive is growing, with a projected market size of USD 5.92 billion in 2024, expanding at a CAGR of 16.78% to reach USD 12.86 billion by 2029. Startups are developing big data solutions to help manufacturers and related industries streamline operations and maximize profits. The Automotive Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process.
Innovation Map outlines the Top 10 Auto Trends & 20 Promising Startups
For instance, Audi and BMW vehicles exchanged sensor data, including camera feeds, during 5G-V2X Direct demonstrations in Berlin. This data alerted drivers to pedestrians and cyclists before they became visible. Dedicated short-range communication (DSRC) based on IEEE 802.11p facilitates direct vehicle-to-vehicle and vehicle-to-infrastructure communication. For instance, Volkswagen integrated DSRC-based V2X technology into its Golf 8 and its ID electric series in Europe. Moreover, it enables companies to customize their fleet by choosing preferred brands, models, and service options, ranging from premium to ultra-luxury vehicles. Moreover, blockchain and digital contracts enhance security and automate billing.
Shared mobility
Sustainable manufacturing lowers emissions, which allows automakers to meet compliance requirements and reduce their environmental footprint. Cleaner production methods reduce operating costs and free resources for reinvestment in new technologies. In 2025, electrification and software integration will have an essential impact on the automotive industry. These tendencies are long-term and are expected to continue shaping the auto industry in the near future. In the next section, weβll explore these and other automotive sector trends in more detail, and see how they will evolve in 2025. Environmental concerns and technological innovations are advancing faster than many anticipated.
The evolution of self-driving and connected cars is simplifying driver-vehicle interaction. Human-machine interfaces (HMIs), including voice-based and haptic feedback systems, are expanding control over various car functions. Moreover, V2X communication systems allow vehicles to interact with each other and infrastructure, improving traffic flow and reducing accidents. These innovations collectively propel the industry towards safer, more efficient transportation. Consequently, the global autonomous vehicle market size is projected to reach USD 448.6 billion by 2035, growing at a CAGR of 22.2%. For this in-depth research on the Top Automotive Industry Trends and startups, we analyzed a sample of 4859 innovative automotive startups & scaleups worldwide.
BOS Semiconductors focuses on high-performance, energy-efficient AI solutions to drive innovation in autonomous driving and enhance in-cabin experiences. US-based startup Avvenire develops LEVs for efficient and eco-friendly urban transportation. Its products include the Leggera, an all-electric vehicle for on-road and off-road use, and the Spiritus, a three-wheel electric car with optional autonomous driving, Wi-Fi connectivity, and solar panels. Younger buyers often prefer subscription models or shared mobility over ownership.
- Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades.
- Mercedes-Benzβs Drive Pilot showcases this with over 35 sensors, including LiDAR and radar, working together to achieve certified Level 3 autonomy.
- The automotive industry was perhaps the saving grace of the European semiconductor industry in 2023, but reality has hit hard in 2024.
- To understand AIβs impact on the automotive industry, it is important to consider the ongoing shifts across the automotive landscape, especially the transition toward software-defined vehicles.
- Governments worldwide are imposing stricter emissions standards and incentivizing zero-emission vehicles (ZEVs).
This is not just a European problem with Volkswagen and Stellantis, as Honda and Nissan merge, and Ford and General Motors struggle. Global economic slowdowns and fierce competition from Chinese manufacturers have slowed the growth of EVs. In 2025, the automotive industryβs digital marketing spending is predicted to keep growing. This rise in digital advertising spending is being steered by the growing usage of social media. Dealerships need to integrate strategic frameworks to capture potential buyers across different stages in the process with the use of social media marketing, click-to-call conversions, and messaging apps. UK-based startup Distributed Additive Manufacturing (DAM) offers 3D uncover previous owners and journeys by VIN printing services including design, building, and finishing of parts.
Vehicle purchases shift online
Looking ahead, there is no doubt that the automotive industry is on the brink of a paradigm shift driven by unprecedented technological advancements and a commitment to sustainability. While most of these concerns can be overcome, it will take some time, and this time will be the most challenging for the industry. Canadian startup KonnectShift provides IoT solutions to optimize fleet and asset management. The startup develops Konnect β GS01, an automatic electronic logging device (ELD) to continuously track vehicular health. Israeli startup DAV offers a decentralized autonomous vehicles platform based on blockchain technology.
Issues such as liability in the event of an accident, cybersecurity measures to prevent hacking, and how to deal with AVs in mixed-traffic environments (with human drivers) will need to be addressed. One critical challenge in transitioning to electric mobility is the availability and accessibility of charging infrastructure. By 2025, significant investments in fast-charging networks will be essential for EV adoption to reach mass-market penetration. Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies continue to evolve, bringing unprecedented changes to vehicle safety and functionality.
Digital Twins and Simulation technologies take centre-stage
Modernized and upgraded vehicles with much more technology allow a thunder growth for the markets providing parts of the vehicles. The demand is highest for vehicles under four years old, which have the latest technologies but are less expensive than new cars. This includes pre-owned electric and hybrid vehicles, and dealerships now offer certified pre-owned cars that look and function like new ones at a lower cost.
Automotive Industry Trends 2025: Future & Growth of Automotive
Indian startup RevitsOne offers AI-powered fleet-management software that is suitable for fleets of varying sizes. The startupβs vehicle management system provides insights into speed, running vitals, and health information. Drivers benefit from Voicera ID, a voice-based virtual assistant that helps them keep track of the information they need. Additionally, the onboard speed recorder limits the speed to discourage dangerous driving behaviors. Singapore-based startup Beam focuses on e-scooters to promote shared mobility in the Asia-Pacific region. Their scooters use an aviation-grade aluminum frame and are customized for sharing, safety, reliability, and durability.
Udelv manufactures Self Driving Last Mile Delivery Vehicles
In the US, the AV market is expected to expand, rising from USD 22.6 billion in 2024 to USD 222.8 billion by 2033, with a CAGR of 28.92% starting in 2025. Regulatory frameworks like UNECE WP.29, effective from last year, mandate stringent cybersecurity measures to drive compliance-related investments. Moreover, Avvenire has a strategic agreement with Daymak International Inc., Canadaβs leading LEV distributor. Daymak will assemble Avvenireβs vehicles and distribute them through its network of over 200 dealers in 25 countries. Further, as part of larger decarbonization efforts, the Intergovernmental Panel on Climate Change (IPCC) emphasizes the contribution of EVs to the reduction of greenhouse gas emissions. Europe is projected to reach a 20.4% market share, while the US is likely to reach 11.2%.
Notably, China, Europe, and the US have established themselves as the leading EV markets, with other countries following suit. Norway set a record in the electric vehicle sector in August 2024, as the number of all-electric vehicles on the road surpassed that of gasoline-powered vehicles for the first time. In terms of new car sales, Norway boasts the highest percentage of battery-electric vehicles in Europe. It also leads Europe in new EV market activity, with just 9.61 percent of new passenger car sales in 2023 attributed to gasoline, diesel, and non-rechargeable hybrid vehicles. By 2025, V2X technology is expected to significantly create more innovative transportation networks and advance autonomous driving capabilities.
